FX.co ★ Technical analysis of NZD/USD for January 17, 2017

NZD/USD is expected to trade with the overall upward bias. The pair has been supported by an intraday rising trend line, as well as the 20-period and 50-period moving averages. Meanwhile, the relative strength index still stays above 50 and lacks downward momentum. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 07140 is not broken below, a further bounce is expected with 0.7190 as the next target.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7190 and the second one at 0.7216. In the alternative scenario, short positions are recommended with the first target at 0.7110 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7090. The pivot point is at 0.7140.

Resistance levels: 0.7190, 0.7215, 0.7245

Support levels: 0.7110, 0.7090, 0.7060